FTB-with debt and good deposit

Macca13

Hi

I am looking to buy a house on my own. I have between a 20 and 25% deposit from my parents. I want to borrow £80k and I earn £27k a year. However I have outstanding debt of 8k and a overdraft, I am working really hard to clear all this prior to completion. I have never been late or missed a payment on anything. I have spoken to experience and they say I'm good apart from the o/s debt.

What's the likelihood of me getting a mortgage?

Thanks

Claire

Macca13

That was supposed to say experian

shonzyd

why cant you pay it off with some of the deposit money?

Macca13

The deposit is coming from my parents and they want to see evidence of me paying it off first and then they will help me clear the debt also.

I just wanted to know if having the debt will have an impact on my application? I know that it will have an effect on lending but I'm way with in how much I want to borrow.

ACG

Your income may well support the debt and the mortgage with some lenders.

I would personally look to use some of the deposit down - You could probably pay £4k of the debt in one chunk and still have effectively a 15% deposit.

Im not sure i would make an application just yet and if you expect it all to be cleared by completion anyway then your talking a month or 2?

Have you found a property? You can always make an application, tell the lender about the debt and confirm it will be paid by completion. Some lenders will insist on seeing it paid off before they release the funds.

Macca13

Thank you.

I have an appointment at Barclays next week as I work for them and then I'm gonna make an appointment with an independent broker and see what they advise.

Have seen a few properties and would prob only need a loan for 70k now and still be able to clear debt and put 20% down

Thrugelmir

Macca13 wrote: »

I have never been late or missed a payment on anything.

This is irrelevant. As you used your overdraft to achieve this. A lender will need to be convinced that you manage your money responsibly. The fact that the entire deposit is gifted may concern some underwriters too.

So understand what you are committing to by taking on a mortgage. Prepare yourself a budget so you can see what's affordable to you.